These Commission proposals will now need to follow the normal EU decision-making process for tax proposals . The timeline for this process cannot currently be outlined with any certainty. The US Internal Revenue Service has already communicated that the deadline for tax authorities to exchange 2019 FATCA reports is to be postponed to 31 December 2020 . The OECD has also recommended the same coordinated extension of the CRS information exchange deadline between tax authorities. The deadline for the reporting of the “historical arrangements under DAC 6 (i.e. reportable arrangements the first step of which was implemented between 25 June 2018 and 30 June 2020) would be set as 30 November 2020 .

irs form 8865 Released a new CRS compliance form with a 2020 submission deadline of 31 December 2020. The Department for International Tax Cooperation of the Cayman Islands announced updates to the FATCA and common reporting standard regimes in response to the coronavirus (COVID-19) pandemic. Set up policies, controls, procedures and IT systems to ensure the fulfilment of FACTA and CRS due diligence and reporting obligations. The extended IRS Form 1065 filing deadline for the 2019 tax year will be 15 September 2020.

The program is called the Streamlined Procedure, and it requires expats to file their last three returns, their last six FBARS , and to self-certify that their previous non-compliance wasn’t willful tax avoidance. Expats are also often subject to extra filing requirements, including those created under the 2010 Foreign Account Tax Compliance Act, more often referred to just as FATCA. However, the CRS reporting deadline for the 2019 reporting period remains unchanged at 18 September 2020. Extended the FATCA reporting deadline for the 2019 reporting period to 16 November 2020.

Institutions need to disclose information about U.S. citizens with accounts overseas. How each country goes about that depends in their individual IGA with the U.S. An interest in a social security, social insurance or other similar program of a foreign government. Accounts to which you only have a signatory authority are not reported on FATCA and not included in assets valuation for FATCA qualification purposes.

The Cayman Islands Department for International Tax Cooperation has therefore moved the CRS reporting deadline to 16 November 2020, as a result the amended CRS reporting deadline within the Cayman Islands will align with the recently amended FATCA reporting deadline. You must not only certify to “non-willful” conduct but also provide specific reasons that will support this certification. Furthermore, a “non-willful” statement may be enough for an examining agent to allow the returns to be processed without penalties if it is submitted as part of a disclosure outside of the OVDP or Streamlined Procedures. Therefore, it’s important to seek professional tax advice to determine if you qualify for non-willful conduct and can take advantage of the amnesty programs.

Funds that have launched in 2019 or are otherwise considering the appointment of a U.S. Partnership Representative should ensure that they meet this deadline. FATCA certifications that are due on 1 July 2020 will be extended to the new date of 15 December 2020, without the need to file an extension request with the IRS. The new due date will automatically show on the FATCA GIIN registration system.This extension of time is provided as a relief measure in response to the COVID-19 pandemic. All Reporting Financial Institutions are required to establish, implement and maintain written policies and procedures to comply and these policies and procedures which must meet the requirements outlined in the CRS rules and regulations.

FATCA first went into effect in 2010 and remains a fact of life for individuals with foreign assets. Here’s a primer on what U.S. individuals with foreign interests need to know about FATCA.

According to the IRS, it is “conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law”. As you can see, the definition is quite broad and so gives rise to free interpretation. In that case, the trustee is required to give special disclosure or face significant penalties, as noted above.

But it’s also likely that after years of confusion, more and more individuals are aware of their obligation to file. FATCA is notoriously broad, and unless U.S. persons control all of the substantial decisions a trust can be considered a foreign trust. For foreign trusts the penalties can be as high as 25% of the value of the trust or 35% of the value of the distribution made. The beginning minimum penalty for non-disclosure or late disclosure is $10,000 per asset or account and can be as high as 50% of the value. Criminal penalties can apply if non-compliance continues and is willful.

Due to the COVID-19 turmoil, the European Commission has proposed to Member States an extension of the reporting deadlines under CRS and DAC 6 by 3 months. This follows a similar extension given by the IRS for FATCA reporting, and by the OECD for CRS reporting purposes.

However, in respect of the 2019 reporting period only, the deadline for submission of the CRS Compliance Form2 is 31 December 2020. Additionally, the DITC has issued further updates regarding the availability of the Country-by-Country Reporting Portal ("CbCR Portal") which affects reporting due this year.